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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: wooden ships who wrote (2604)	1/5/1998 1:19:00 AM
From: sea_biscuit	Respond to of 42834

On Saturday, Brinker made short work of the Fools especially with regard to the so-called "Fools 4" strategy. Suffice it to say, it seems to work well if you pick the right four issues. The Fool Four strategy appeared to be a case of data-mining, at least to me. It calls for a 40% allocation in one stock and 20% each in the other three. It is always possible to "back test" so many strategies and come up with some combination that gave the highest returns. That is how the Fool Four strategy basically originated. However, back testing is one thing. Real-life investing is quite another. In real life, flesh-and-blood investing, you don't know how the stock with the 40% weighting will fare! In fact, beginning this year, the fools themselves have modified their strategy to an allocation of 25% each in the four stocks. Maybe they will "modify" their strategy again during a bear-market and bail out at the bottom! Dipy.